Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1887-05-12
Speaker stuart's Report.

Entered al the Pcstogice at Alexandria, Virginia, as
second-cl class matter.
Speaker Stuart's Report.
The following is the text of tho report on
the debt question, made on Tuesday By Mr..
Stuart, chairman of the Legislative commit
tee:
To the Senate and House # Delegates:
Your committee beg leave to make fur
| ther preliminary report: When your COM
mittee made their last preliminary report,
the commission was awaiting telegraphic
authority from their principals 10 modify q
proposition which they had submitted. o.
Saturday the 1!h instant said commission
submitted paper, in which they undertook
to show, by argument, that the State could
bear much larger annual charge upon the
| Treasury for the payment Of interest than
that shown by the official statement Of the
officers Of the government, and stated that
they were authorized 10 submit a scheme of
arrangement which would involve an sn-
nual payment of about 100000 only for the
interest of the entire debt. including that
he'd by colleges and public Institutions"
To this paper your committee, contro
| veIliDg their arguments, concluded by de.
clerirg that they were willing to make an
| honest euuTb 10 lGuuC6 our eAp6uSe5 III
every direction, TO husband our resources,
administer the government upon the most
economical basis. and thus prepare to carry
out the agreementto pay promptly the prom
! ised interest. That settlement would to some
extent reduce the expenses of government !;
that we could not find enough in those
without Increasing the rate and burden Of
taxation and without interfering with our
free schools and necessary charitable insti-
luiions, 10 justify us in promising to pay any
! SUN the annual interest on which exceeds
| approximately 1928 900.
| To this suggestion of your committee the
| com mission, on the morning of the 9th OF
| May. made reply, again arraigning the
State for IFS eXtravagant expenditures for
eleemosy nary purpoats and imperfect as
sessment5 Of property for purposes oftaxa-
ton, and submitting tabulated statement
based upon the recognition of the full
amount of the consul and 1910 debt, and q
suggested settlement of arrears of interest
and uDfunded debt which produced the sum
of $26 SS7 ,905 as principal.
This principal sum, as stated by them,
was reached by deducting from the debt of
the State the Riddeberger bonds held by
the sinking fund, amounting 10 81 242 ,043 60;
the bonds held by tho literary iund, amount.
ing to 81, ,179 ,l272S the bonds held by the
Board of Public Works, amounting TO
| SlG3 200 ; bonds held by ina United States
| for 1851 500, with interest thereon, amount
ing 10 S71S,0 coo and further deduction OF
81 626, ,667, being 10 per cent. OF the debt !;
the evidences OF which, they claim, have
been lost and for which no demand will be
| likely made upon the State, claiming that
experience shows this as an average loss on
| q long outstanding debt which claimed de-
ductions aggregate the sum of 81 $40, ,S37 SS.
Ats per cent. the annual interest upon
tteir supposed capital would reach $780, ,790;
| but they further claimed that that part of
this prncipal debt composed of the consol
and 10 40 bonda, and the arrears of interest
thereon. funded on their plan-to wit,
| So, SOS, ,400-shoud, after the expiration of
| live years, carry interest at the rate OF per
cent Their scheme. however, proposed the
payment Of portion of the arrears of inter-
est upon the consol and 1910 bonds IN cash
to wit, the sum of 81 .0O2, 600.
BY an examination of this statement it
appears that, including the aforesaid deduc-
lions, which seemed to US altogether unrea.
sonable, the principal of the debt outstand-
ing by the State would reach the enormous
sun of S34 sos, ,742, and that the State, in
addition thereto, would have to provide for
the cash payment, upon the presentation OF
the bonds for funding, 81 ,O02 600 for arrears
Of interest; which was rendered utterly i'm
possible, as by their own scheme they de-
mended the cancellation of the bonds held
by the sinking fund, which had been dedi'
Gated by the Legislature to the very purpose
of raising the errearages OF interest as The
funding proceeded.
10 addition 10 these demands, which
seemed to us SO reasonable, their proposition
contained other details Of the settlement
which would have raised serious questions
for discussion. Among these was demand
that the new bonds and coupons be express
" declared free from all taxes, direct or in
direct, by State, county, or corporation, and
the coupons to be tax-receivRble.
That the expenses incurred or to be in
Cured by the Council of Foreign Bondhold-
ers and the Virginia committee be provided
for that any bonds not funded in two years
afer The commencement of funding should
uny be funded subsequently, on terms to be
u,reed upon by the State and the Council
Of Foreign Bondholders.
In view of these demands, go far beyond
the possible capacity and resources OF the
State, without, both for the present and the
future. increasing the burden OF taxation,
Your committee felt constrained TO reply 10
the commission as follows:
Resolued That it be communicated to the
commission Of the Council of Foreign Bond
holders that their proposition, this day pre-
sented is wholly unsatisfactory to US
would, in our opinion, be unsatisfactory to
the General Assembly, and would be reject
ed by the people. But anxious to reach an
agreement, this joint committee present as
their ultimatum the following:
A piiacipal ofs25 600 900, approximate
ly, that may be capitalized upon terms here;
after agreed upon, which must include all
bonds held By the State.
, The boids to run fiftg years at per
4.,,tns,, iar nnEnrl redee,na hla in ten